Kansas House Bill 2216 was passed on April 29, 2015, increasing the maximum bond amount for money transmitters from $500,000 to $1 million.
The bill establishes two factors as the new basis for which the State Bank Commissioner determines the required securities:
- volume of transmitter’s business transacted in the state
- impaired financial condition of a licensee (result of reduction of net worth or other relevant financial losses)
The bond amount that each prospective money transmitter is required to post is decided on a case-by-case basis as determined by the State Bank Commissioner. However, each money transmitter bond must be set in an amount of at least $200,000.
H.B. 2216 makes revisions to Section 9 Article 5 of the Kansas Statutes Annotated. While the maximum amount has been amended, the previously enforced bonding conditions remain the same. A few examples of regulations enforced by Kansas money transmitter bonds are as follows:
- Failing to keep and maintain accurate recordkeeping
- Advertising any false or misleading statements in accordance with business practices
- Refusing to permit an examination or investigation by the Commissioner
- Concealing information unjustifiably
- Engaging in the business of money transmission without a license
- Designating an agent without having the license to do so
- Failing to remain in compliance with the Kansas Money Transmitter Act
For additional information on money transmitter bond dates and regulations, please refer to the Kansas surety bond form and the Kansas Money Transmitter Act.
This bill becomes effective July 1, 2015. If you are looking to post a money transmitter bond in Kansas or have any questions regarding the new legislation updates, give SuretyBonds.com a call at 1 (800) 308-4358. Our team of surety specialists is standing by to assist you with all your bonding needs. For your convenience, you can also visit us online and submit a bond request form now.